As Productivity in the Manufacturing Sector Increases, the Service Sector

question 89

True/False

As productivity in the manufacturing sector increases, the service sector must keep pace or it will become more expensive in the long run.

---

Definitions:

Capital Stock

The original amount the owners paid into the company plus any additional paid-in capital to purchase stock in the company.

Long-Term Debt

An obligation for debt that is due to be repaid in more than 12 months.

5-Year Bank Loan

A financial agreement where a bank lends money to a borrower, to be repaid with interest over a five-year period.

Intangible Assets

Non-physical assets that have value, such as trademarks, patents, copyrights, and goodwill.